EUR/USD Forecast – Euro Plunges Into the Wekend
EUR/USD Forecast Video for 27.03.23
Euro vs US Dollar Technical Analysis
The Euro has fallen rather significantly during the trading session on Friday to reach down to the 1.07 level. At this point, the market has completely wiped out the post-FOMC burst higher, and now it looks like traders are starting to worry about risk appetite yet again. After all, the entire global economy seems to be threatened, as credit issues are going to be a significant weight around the neck of the markets.
It’s worth noting that the 50-Day EMA sits just below the 1.07 level, and it is starting to turn higher again. That’s a technical indicator that will attract a lot of attention, but you can also make an argument for the fact that we have failed near the 1.09 level, which is basically where the market had collapsed from previously. At this point, it looks like the Euro is going to continue to see a lot of negativity going forward, or perhaps it should be said that the US dollar is going to be a lot of strength in this type of environment.
Underneath, the 1.06 level is an area that a lot of people will be paying attention to, and then of course the 200-Day EMA that could offer quite a bit of support that sits just below there. The market breaking down below the 200-Day EMA would of course be extraordinarily negative, so therefore you need to pay close attention to a move like that. In that scenario, we would probably see a resumption of the overall negativity in the market.
On the other hand, if we turn around a rally from here, we could get a short-term bounce, but I think at this point in time you need to see the Euro break above the 1.10 level to clearly enter a bullish phase. That of course would probably coincide with a lot of US dollar weakness in general, so pay attention to other currency pairs around the world, because if we see the US dollar falling everywhere, then it will give even more of a boost for buyers in this market. In general, this is a market that will continue to be very noisy, right around this area as we are trying to make a bigger decision.
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